AM Best keeps Maiden ratings unchanged
AM Best has stated that the financial strength rating of A- (Excellent) and the long-term issuer credit rating (ICR) of “a-“ of Maiden Reinsurance and Maiden Reinsurance North America both subsidiaries of Maiden Holdings, are unchanged after its recent strategic review, along with leadership changes.
The rating agency also said that the long-term ICR of “bbb-“ of Maiden Holdings and its downstream intermediate holding company subsidiary, Maiden Holdings North America, and all long-term ICR assigned to securities issued by them are also unchanged. The outlook of these credit ratings remains negative.
In conjunction with the release of its second-quarter 2018 earnings, Maiden Holdings announced that it continues to pursue various options in conjunction with its previously announced strategic review, but remains committed to maintaining a “substantial presence in the US reinsurance market.”
Further underwriting actions and expense reductions will be implemented that are expected to drive improved results in the company’s diversified segment. The majority of the activity related to the strategic review is anticipated to occur during third-quarter 2018, with the review complete by year-end.
AM Best said that the changes in equity and reserves through the first six months of 2018 have been noted, but no rating action is required. The negative outlook, which reflected the decline in balance sheet strength in 2017, and the potential for continued deterioration in underwriting and operating trends, remains in place. AM Best will continue to monitor financial results and balance sheet strength and will remain in contact with management as it evaluates various strategic options.
